Ex 9-2 1 D 2 A 3 C 4 D 5 D 6 B 7 B 8 D 9 C 10 A Ex 13-1 1 B 2 D 3 C 4 A 5 C 6 D 7 D 8 B 9 A 10 A 9-10. MODIFIED ACCRUAL/ ADJUSTMENT ACCOUNT AFFECTED ACCRUAL ACCOUNT Debit Credit 1. DEPRECIATION EXPENSE Accrual 674300 BUILDINGS & EQUIPMENT Accural 674300 2. SALARY EXPENSE Accural 39123 SALARIES PAYABLE Accural 39123 3. BUILDINGS & EQUIPMENT Accural 29049 EXPENDITURES Modified 29049 4. BONDS PAYABLE Accural 50000
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cost Shop premises: accumulated depreciation Fixtures and fittings: cost Fixtures and fittings: accumulated depreciation Inventories at cost Trade receivables Allowance against bad and doubtful debts Prepaid insurance Trade payables Accruals Bank Bank loan Share capital: £1 ordinary shares Retained profits Further information a. The shop premises were acquired under a 25 year lease on 1st January 2008 and are being depreciated to a zero residual value. b. Depreciation is provided on a straight line
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Solutions for the Biltrite Bicycles Inc. Case Module I - Assessment of Inherent Risk 2 Module II – Assessment of Control Risk 16 Module III - Control Test: Sales Processing 28 Module IV - PPS Sampling: Factory Equipment Additions 30 Module V - Accounts Receivable Aging Analysis 34 Module VI - Sales and Purchases Cutoff Tests 41 Module VII - Search for Unrecorded Liabilities 46 Module VIII - Dallas Dollar Bank Reconciliation 48 Module IX- Analysis of Interbank Transfers 51 Module X -
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The two methods of estimating uncollectible receivables are the: aging-of-receivables method and direct write-off method percent of sales method and the aging-of-receivables method allowance method and the direct write-off method percent of sales method and the direct write-off method The use of the allowance method of accounting for bad debts is preferred over the direct write-off method because of the: matching principle historical cost principle revenue recognition principle full disclosure
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1) As you have learned in this week’s readings the Accounting Equation is Assets = Liabilities + Owners’ Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation. 2) What does the term account mean? What are the different classifications of accounts? How do the rules for debits and credits impact accounts? Please provide an example of how debits and credits impact accounts.
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Adjusting and closing entries Unpaid salaries Rs. 7‚500 (accrued expense) Outstanding electric bills Rs. 6‚500 (accrued expense) Commission Receivable Rs. 5‚000 (accrued revenue) Depreciation of office furniture at 10% office equipment 15% (Office furniture Rs. 35‚ 000 and office equipment Rs. 45‚000) Allocate allowances for uncollectible 2% on accounts receivable. (Accounts Receivable Rs. 17‚000) Closing entries for Debit
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to. AmeriSouth claimed that the water distribution‚ sanitary-sewer systems‚ gas lines and electric were eligible for 15 year depreciation‚ while many of the items replaced in the renovation were eligible for 5 year depreciation. This would allow AmeriSouth to depreciate $3.4 million of the property over 5 or 15 years instead of 27.5‚ thereby increasing their depreciation deduction by roughly $397‚000 in 2003‚ $640‚000 in 2004‚ and $375‚000 in
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base – what’s being taxed. Trading Income – Tax Base = Profit Standard Proforma $ Accounting Profit X - Income exempt from tax‚ or taxed under other rules (X) + Disallowable expenses X + Depreciation X - Tax Depreciation (capital allowance) (X) = Taxable Profit X Income exempt = income not relating to the main trading activity of the organization i.e.
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4. c. 9. d. 5. a. 10. c. 15-2. a. ERIKSTEIN COLLEGE GENERAL JOURNAL Debits Credits 1. TUITION AND FEES RECEIVABLE 195‚800 TUITION & FEES DISCOUNT AND ALLOWANCES 48‚700 TUITION AND FEES—UNRESTRICTED 244‚500 2. CASH 2‚415 PLEDGES RECEIVABLE 550 CONTRIBUTIONS—UNRESTRICTED 2‚080 CONTRIBUTIONS—TEMPORARILY RESTRICTED 550
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difficult to combat. There is also a decreasing interest rate in the market which means that Harnischfeger corporation will have to deal with high interest rate in the future. The change in the depreciation policies will improve the profitability of the firm now but in the long run there would be higher depreciation costs which lead to greater operating costs. As the plant and equipment age‚ there would be higher maintenance costs which would further cause higher operating
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